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acct 2220 > chapter one smartbook > Flashcards

chapter one smartbook Flashcards

1
Q

Who are the users of managerial accounting information?

A

Internal users

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2
Q

Match the Terms:

Managerial Accounting
Financial Accounting

Global information on the company as a whole
Local information on subunits of the organization

A

Managerial Accounting: Local information on subunits of the organization

Financial Accounting: Global information on the company as a whole

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3
Q

The organization responsible for regulating financial reporting is the blank

A

SEC

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4
Q

Accounting that reports on what is expected to happen in the future is referred to as blank accounting

A

Managerial

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5
Q

Match the Terms:

Managerial Accounting
Financial Accounting

A

Managerial Accounting: No regulation by any authority

Financial Accounting: Regulation by SEC, FASB and other determiners of GAAP

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6
Q

Who are the users of financial accounting information?

A

External Users

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7
Q

Which of the following are included in the cost of manufacturing a product?

A

Materials, labor, and overhead

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8
Q

At what level is information aggregated in managerial accounting?

A

Local on subunits of the organization

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9
Q

When a company pays cash for manufacturing costs, total assets blank​.

A

do not change

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10
Q

Accounting that reports what happened in the past is referred to as blank (financial/managerial) accounting.

A

financial

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11
Q

If a company incurs $4,000 in manufacturing costs to produce 200 units, what is the average cost per unit?

A

$20: $4,000 ÷ 200 units = $20

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12
Q

How is managerial accounting regulated?

A

No formal regulation, limited by the value-added principle

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13
Q

Salaries of production workers are recorded to inventory because the cost blank​.

A

is associated with producing inventory, not earning revenue

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14
Q

Which of the following costs are not included in the cost of manufacturing a product? (Select all that apply.)

A

Marketing
Administrative
Research and development

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15
Q

Paying salaries and administrative costs with cash results in which of the following? (Select all that apply.)

A
  • Decreases cash
  • Decreases stockholders’ equity.
  • Decreases net income.
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16
Q

When a company pays cash for manufacturing costs such as labor, material, or overhead, how does recording that cost affect total assets?

A

The transaction does not affect total assets.

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17
Q

Recognizing depreciation on manufacturing assets results in which of the following? Assume the company has not sold the inventory yet (Select all that apply.)

A
  • No effect on net income.

- No effect on total assets.

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18
Q

If a company incurs $2,000 in manufacturing costs to produce 1,000 units, what is the average cost per unit?

A

$2,000/1,000 units= $2

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19
Q

Salaries of production workers are not expensed because they blank​.

A

are associated with producing inventory, not earning revenue

20
Q

Paying administrative salaries with cash affects which of the following financial statements? (Select all that apply.)

A
  • Total assets on the balance sheet
  • Total stockholders’ equity on the balance sheet
  • Income statement
21
Q

When a company pays cash for manufacturing costs, total assets blank​.

A

do not change

22
Q

Selling inventory for cash affects which of the following financial statements? Assume inventory is sold for more than it cost to produce. (Select all that apply.)

A
  • Inventory reported on the balance sheet
  • Income statement
  • Total stockholders’ equity on the balance sheet
23
Q

Recognizing depreciation on manufacturing assets affects which of the following financial statements?

A

Inventory reported on the balance sheet

24
Q

If a company incurs $4,000 in manufacturing costs to produce 200 units, what is the average cost per unit?

A

$4,000 ÷ 200 units = $20

25
Q

Indirect costs blank​.

A

cannot be cost-effectively traced to products

26
Q

Salaries of production workers are recorded to inventory because the cost blank​.

A

is associated with producing inventory, not earning revenue

27
Q

Paying administrative salaries with cash results in which of the following? (Select all that apply.)

A
28
Q

Paying administrative salaries with cash results in which of the following? (Select all that apply.)

A
  • The transaction does not affect liabilities.
  • Decreases total assets.
  • Decreases net income.
  • Decreases stockholders’ equity.
29
Q

Recognizing depreciation on manufacturing assets results in which of the following? Assume the company has not sold the inventory yet (Select all that apply.)

A
  • No effect on net income.

- No effect on total assets

30
Q

What is corporate governance?

A

set of relationships between the board of directors, management, shareholders, auditors, and other stakeholders that determine how a company is operated.

31
Q

Costs that cannot be traced to a product or service in a cost-effective manner are called blank​ costs.

A

Indirect

32
Q

Production workers’ salaries are not expensed because the cash paid to the workers is used to produce inventory.

A

True

33
Q

Motives for managers to manipulate financial statement information include blank​.

A
  • increased compensation and bonuses

- increased stock prices

34
Q

Paying administrative salaries with cash affects which of the following financial statements? (Select all that apply.)

A
  • Total assets on the balance sheet
  • Income statement
  • Total stockholders’ equity on the balance sheet
35
Q

Selling inventory for cash affects which of the following financial statements? Assume inventory is sold for more than it cost to produce. (Select all that apply.)

A
  • Total stockholders’ equity on the balance sheet
  • Income statement
  • Inventory reported on the balance sheet
36
Q

The set of relationships between the board of directors, management, shareholders, auditors, and other stakeholders that determine how a company is operated is referred to as what?

A

corporate governance

37
Q

Which of the following are expected of IMA members? (Select all that apply.)

A
  • Resolution of Ethical Conflict
  • Competence
  • Confidentiality
  • Integrity
  • Credibility
38
Q

Costs that cannot be traced to a product or service in a cost-effective manner are called blank costs

A

indirect (or overhead or manufacturing overhead)

39
Q

Which of the following is not one of the components of the fraud triangle?

A

Honesty

40
Q

Motives for managers to manipulate financial statement information include blank​.

A
  • Decreases stockholders’ equity.
  • Decreases cash.
  • Decreases net income.
41
Q

Which of the following are required by the Sarbanes Oxley Act? (Select all that apply)

A
  • CEO and CFO must certify financial statements.

- CEO and CFO are responsible for the establishment and enforcement of a strong set of internal controls.

42
Q

Selling inventory for cash results in which of the following? Assume inventory is sold for more than it cost to produce. (Select all that apply.)

A
  • Decreases inventory.
  • Increases net income.
  • Increases stockholders’ equity.
  • Increases cash.
  • The transaction does not affect liabilities.
43
Q

Identify the three elements of the fraud triangle.

A

Opportunity
Pressure
Rationalization

44
Q

SOX requires which individuals to certify in writing they have reviewed a company’s financial reports and the reports present fairly the company’s financial status?

A
  • Chief Executive Officer (CEO)

- Chief Financial Officer (CFO)

45
Q

Selling inventory for cash results in which of the following? Assume the inventory is sold for more than it cost to produce. (Select all that apply.)

A

acct 2220 (3 decks)

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